Page 6 - LatAmOil Week 32 2021

LatAmOil MEXICO LatAmOil

BBVA says Pemex must invest

more to reach production targets

MEXICO’S national oil company (NOC) year in order to reach this year’s target figure of
Pemex must increase investment in explora- 1.802mn bpd.
tion and development projects in order to reach The bank did not speculate as to how much
production targets between 2022 and 2024, the NOC might have to spend to achieve its
according to BBVA, the country’s largest finan- aims. According to Mexican press reports, data
cial institution. published by the National Hydrocarbon Com-
In an analysis published earlier this week, mission (CNH) show that Pemex invested some
BBVA said that Pemex appeared to be on track $208mn in upstream projects in the first half of
to sustain oil output at 1.802mn barrels per day 2021.
(bpd) on average in 2021, assuming that devel- CNH has also reported that the company
opment operations at 20 new fields move for- extracted 1.611mn bpd of crude oil on average
ward as planned. It also cautioned, though, that in the month of June. These volumes accounted
if the company did not raise yields at the new for nearly 96% of Mexican production, which
sites quickly enough, it would have a difficult averaged 1.681mn bpd in June. ™
time pushing production up to the target levels
of 1.974mn bpd in 2022, 2.121mn bpd in 2023
and 2.186mn bpd in 2024.
Ramping up new upstream projects will be
“crucial” for the state-owned company over the
next few years, the bank said. It also stressed the
importance of stabilising production at mature
fields, noting that these operations would also
require more investment in exploration and
development.
As of June 30, BBVA noted, the new fields in
question were yielding about 231,000 bpd of oil,
or about 80% of their projected peak produc-
tion capacity. Pemex will have to raise output
levels to 290,000 bpd in the second half of the Pemex aims to boost production to 2.186mn bpd in 2024 (Photo: Pemex)

Talos says it will not give up on Zama

US-BASED Talos Energy has said it will not he said, adding that the company might do this
abandon plans to develop Zama, a large oilfield by focusing on assets from its current portfo-
in the southern Gulf of Mexico, despite the Mex- lio or by investigating merger and acquisition
ican government’s recent decision to give the opportunities.
national oil company (NOC) Pemex control of He did not say whether Talos was looking at
the project. any specific assets, but he did point to BP’s recent
Timothy Duncan, the CEO of Talos, said in discovery at the Puma West site, located in the
a conference call with analysts last week that eastern section of the deepwater zone of the US
his company was determined to move ahead Gulf of Mexico. The Puma West find highlights
with work at the site, which has been unitized the potential of this area, which is also home to
with neighbouring fields assigned to Pemex. several of Talos’ licences, he commented.
“We have not 100% given up on Zama,” he Beyond the Gulf of Mexico, he commented,
declared. “We are doing absolutely everything the company will look into M&A opportuni-
given the circumstances to maximise value to ties in the hope of gaining access to greenfield
shareholders.” projects or existing large-scale development
Duncan also stated, though, that Talos operations. Talos hopes to replicate the success
would work to increase its reserves through of other firms that have invested in greenfield
other development projects. “[We] are going projects, as US-based Hess Corp. has done with
to keep looking for areas to replace [Zama],” the Stabroek block offshore Guyana, he said.

P6 www. NEWSBASE .com Week 32 12•August•2021